Last year, myself and my friend decided to come together to build a manufacturing plant in Lagos.
The manufacturing plant was to produce the following:
Tissue paper
Serviette
Handkerchief
And
Then baby diapers
The market was there even though the margin was not so good, as it is thin, but we decided to forge ahead with the conviction that once we become market leaders, we will eat well and the margin will be good.
The total cost of the project at that time was 1.7 billion, and we planned to raise it by liquidating our personal savings and then speaking to family and friends.
Everything was on course until we reached the aspect of the market survey.
I first met a guy. A brilliant chap who is a trader on Lagos Island
After hearing what brought me to the market,
The guy laughed and said,
Why not go into the fake production of already existing products on the market, like Molfix or Huggies diapers? Instead of spending all that to start a business, a business that traders will counterfeit your product once it blows.
Fake
How
I was shocked.
Why would I fake another person’s business when I could have spent that time building my own products from scratch, which I believe will have market acceptance within a short period of time?
The guy looked at me and then said, I must be joking, and I don’t want to make fast money.
People are making a killing by producing counterfeit products of market leaders in the niche you want to start manufacturing.
You are here, speaking English for me.
You won’t make money if this is how you think.
The guy boldly told me
I left him to continue my research, and I was shocked that he was not an outlier; rather, what he told me is the norm in our market today, not the exception.
More traders are in the business of selling fake products than the original ones.
It dawned on me that in Nigeria, we have more fake products on the market than the original ones.
As popular as Mobil engine oil is, the fake Mobil on the market is more popular and common than the original Mobil oil.
Same with drugs.
Drinks
Foods
And diapers
Nothing is spared from these wicked trades that want to make money by all means in the name of the street.
It was during that period that I then understood very well why Dangote, for the most part, steered away from business. Wicked people like Ugo can counterfeit.
You can’t counterfeit or produce fake Dangote cement, no matter how hard you try.
The cost and the technology to do that are not what you can do easily and are not readily available.
The same with his sugar business
Dangote must have seen Shege as a mega trader when he used to import every item you can think of before transitioning to an industrialist in the 90’s.
It also gave a clue as to why manufacturing businesses are suffering in Nigeria and have not lived up to their highest potential.
Banks are declaring mind-blowing bumper profits while manufacturing businesses like Nigeria Breweries declare losses.
They can’t relate.
I know a business in Nigeria that does $1:5 million in monthly revenue.
Of course, it is not a manufacturing business.
Manufacturing businesses that make 1.5 billion every month are in the league of Nestle.
The rest makes that 1:5 billion naira as their yearly revenue.
The numbers are sobering to look at.
Legit businesses in Nigeria are leaving because traders have vowed that they won’t enjoy the benefits of their enterprises.
Of course, my friends and I cancelled the project because of this reason.
That was how the dream died.
Fake products cause cancer.
Businesses are suffering because of it.
Nigerians are dying every day because some of us used or consumed fake products without knowing
We can’t continue this way.
The country as it is needs a hard reset.
Chukwudi Iwuchukwu
